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Securities
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April 09, 2025
AI Audio Co. Brass Accused Of Acquisition Accounting Errors
Executives and directors of California-based voice recognition technology company SoundHound Inc. were hit with a shareholder derivative suit alleging they failed to disclose material weaknesses related to accounting for two acquisitions completed last year.
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April 09, 2025
Coinbase Judge Won't Rethink Greenlighting Investor Suit
A New Jersey federal judge declined to review his ruling to keep a Coinbase investors' class action alive, saying his order did not gloss over any legal or factual issue when finding the company and its executives must face the suit accusing them of concealing certain regulatory and bankruptcy risks from investors.
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April 09, 2025
Purported AI Co. Founder Gets 2½ Years For Fraud
The founder of a purported artificial intelligence video analysis startup will spend 2½ years in prison after pleading guilty to securities fraud in connection with government claims he lied to investors, including a venture capital fund and a university endowment fund, about his company's revenue and track record of securing investments.
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April 09, 2025
Judge Rejects Objections To $400M GPB Capital Payout Plan
A New York federal judge has approved a plan to distribute up to $400 million to investors defrauded by GPB Capital Holdings, rejecting objections from company insiders who argued the settlement was unfair because they could still face liability, finding that those concerns didn't outweigh the need to compensate defrauded victims.
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April 09, 2025
Senate Confirms Trump Pick Atkins To Lead A Leaner SEC
The U.S. Senate on Wednesday confirmed Paul Atkins to be the next chair of the U.S. Securities and Exchange Commission, clearing the way for an agency veteran and regulatory critic who is expected to slow the SEC's enforcement agenda and pursue smaller corporate penalties at a time when the agency is grappling with staff cuts and market turmoil.
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April 09, 2025
CrowdStrike Says Outage 'Unfortunate,' Not Securities Fraud
CrowdStrike Holdings Inc. has urged a Texas federal judge to toss a shareholder suit accusing it of mischaracterizing the measures it was taking to prevent a system crash, which caused its stock price to plummet after the platform experienced a massive outage last year, saying the outage was "unfortunate ... but it did not reveal any securities fraud."
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April 09, 2025
SafeMoon CEO Flags DOJ Crypto Memo In Bid For Dismissal
The CEO of crypto firm SafeMoon alerted a Brooklyn federal judge Wednesday to a U.S. Justice Department directive not to pursue charges related to digital assets under the Securities Exchange Act or Commodity Exchange Act, suggesting that the judge should dismiss his investor fraud case.
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April 09, 2025
Ill. Real Estate Broker Gets 4 Years For $3M Investment Scam
A Chicago real estate broker has been sentenced to more than four years in prison after pleading guilty last year to allegations he duped clients into investing millions of dollars in properties that did not exist and then used the investors' funds for personal expenses, federal prosecutors announced Wednesday.
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April 09, 2025
Bessent: 'It's Main Street's Turn' For Regulatory Rollbacks
U.S. Treasury Secretary Scott Bessent on Wednesday sketched out ambitious Trump administration plans to cut financial rules for smaller, so-called community banks and rein in federal bank supervision, saying the goal is to lock up "bureaucratic hubris."
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April 09, 2025
Del. Justices Grapple With 'Knowability' In Stock Sale Appeal
Delaware's chief justice said Wednesday the court recognized the seeming unfairness in a stockholder's bid against dismissal of his court challenge to a state sale of tech company shares as long-abandoned property, but cautioned that commercial interests need certainty in their markets.
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April 09, 2025
Kirkland Hires Ex-Clifford Chance Investment Funds Partner
Kirkland & Ellis LLP announced the hiring of a former Clifford Chance partner for its investment funds practice group.
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April 09, 2025
Fraudster Says Sentencing Judge Overlooked Harsh Detention
A California man convicted in a $2 million investment fraud scheme asked the Fourth Circuit Wednesday to overturn his 70-month prison sentence, arguing that a North Carolina federal judge wrongly denied his request for a shorter term based on time he spent in harsh overseas detention.
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April 09, 2025
Connell Foley Survives Investment Firm's DQ Bid In Bias Suit
A federal judge in New Jersey has rejected a Black-owned investment company's request to disqualify a Connell Foley LLP attorney from representing the state in the investment firm's bias case, reasoning that there is nothing showing the law firm or the lawyer previously represented the company.
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April 09, 2025
Claims Trimmed In Firm's Suit Over Sports Fraud Coverage
A Florida federal court tossed more than half the claims a law firm raised against an AIG unit for allegedly misleading them into representing a sports memorabilia collector in underlying civil and criminal fraud cases without payment, finding claims against the unit either premature, duplicative or insufficiently pled.
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April 08, 2025
Ex-Outcome CEO, Co-Founder Challenge $1B Fraud Convictions
Outcome Health's former CEO and co-founder are challenging their convictions for lying about the company's capabilities and value in a $1 billion fraud, arguing a legally deficient fraud theory, unfair narrative evidence and the government's admitted pre-trial asset over-restraint warrant unwinding the jury's verdict.
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April 08, 2025
4th Circ. Affirms Dismissal Of IonQ Shareholder Fraud Suit
The Fourth Circuit on Tuesday declined to revive a shareholder class action against quantum computer developer IonQ, holding that the plaintiffs' reliance on a short seller's report didn't clear the "high bar" for bringing their securities fraud claims against the company.
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April 08, 2025
Crypto Investor Sues In Del. Alleging $16M Pump, Dump Loss
Cayman Islands-registered cryptocurrency venture Hash Asset Management Ltd. sued two other crypto entities and four individuals in Delaware's Court of Chancery on Tuesday, alleging a "pump and dump" scheme that saw more than $16 million allegedly siphoned away in violation of token deposit and lending agreements.
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April 08, 2025
TelexFree Investors Can't Sue Wells Fargo, Others As Class
A Massachusetts federal judge on Tuesday refused to grant class certification in a suit from investors claiming they lost money in the massive TelexFree Ponzi scheme, siding with a handful of defendants remaining in the multidistrict litigation.
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April 08, 2025
Four Robinhood Users Must Arbitrate Meme Stock Claims
A Florida federal judge overseeing the multidistrict litigation over Robinhood's decision to freeze trading in certain so-called meme stocks ordered four remaining plaintiffs in the case to arbitrate their claims, writing in an order that there's no dispute a valid arbitration agreement exists.
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April 08, 2025
FDIC To Look At 'Indexing' Size Thresholds For Bank Rules
The Federal Deposit Insurance Corp.'s acting chief said Tuesday that the agency may recalibrate what counts as a large bank after years of inflation and is working on other broadly deregulatory plans for banks' living-will filings, a key leverage rule and more.
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April 08, 2025
SEC's Uyeda Urges Review Of Federal-State Oversight Splits
The acting chairman of the U.S. Securities and Exchange Commission on Tuesday called for a reevaluation of the threshold that divides federal and state oversight of investment advisers, saying he wants to better conserve SEC and taxpayer resources by focusing on the largest advisers.
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April 08, 2025
Attys In Javice Case Warned About Post-Trial Juror Contact
A Manhattan federal judge on Monday cautioned attorneys in the criminal case against Frank founder Charlie Javice to adhere to the rules governing post-trial contact with jurors who convicted her and another executive on fraud and conspiracy charges stemming from JPMorgan Chase & Co.'s ill-fated acquisition of the educational startup.
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April 08, 2025
Georgia Day Trader Settles SEC's Manipulation Suit For $1.5M
A Georgia-based day trader has agreed to pay over $1.5 million to end a U.S. Securities and Exchange Commission lawsuit claiming that he was central to a scheme to manipulate trading prices for certain issuers via false rumors he distributed on his financial media network.
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April 08, 2025
Compliance Chief Wants Out Of SEC Fraud Suit
The chief compliance officer and general counsel of a wealth management firm has urged an Illinois federal judge to dismiss him from a U.S. Securities and Exchange Commission suit over an alleged offering fraud by former representatives at his firm, saying "the commission does not even understand what its own pleading burden in this case is."
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April 08, 2025
MSP Recovery Sued For Docs In Del. After $33B SPAC Dispute
A stockholder of healthcare data analytics company MSP Recovery has demanded the company turn over books and records over allegations that it admitted to financial difficulties and federal investigations shortly after finalizing a $32.5 billion blank-check merger nearly three years ago.
Expert Analysis
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A Halftime Analysis Of DOJ's Compensation Pilot Program
The U.S. Department of Justice appears to consider the first half of its three-year pilot program on compensation incentives and clawbacks to be proceeding successfully, so companies should expect prosecutors to emphasize the program and other compliance-related considerations early in investigations, say attorneys at Debevoise.
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Kiromic SEC Order Shows Importance Of Self-Reporting
The U.S. Securities and Exchange Commission's recently filed settled charges against Kiromic BioPharma illustrate the critical intersection between U.S. Food and Drug Administration regulatory processes and investor disclosures under the securities laws, and showcase how responding promptly to internal whistleblower reports may reap benefits, say attorneys at Arnold & Porter.
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Series
Documentary Filmmaking Makes Me A Better Lawyer
Becoming a documentary filmmaker has allowed me to merge my legal expertise with my passion for storytelling, and has helped me to hone negotiation, critical thinking and problem-solving skills that are important to both endeavors, says Robert Darwell at Sheppard Mullin.
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Litigation Funding Disclosure Debate: Strategy Considerations
In the ongoing debate over whether courts should require disclosure of litigation funding, funders and plaintiffs tend to argue against such mandates, but voluntarily disclosing limited details about a funding arrangement can actually confer certain benefits to plaintiffs in some scenarios, say Andrew Stulce and Marc Cavan at Longford Capital.
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Understanding Risks Of Celebrities 'Hawking' Crypto Tokens
Prominent social media personality Haliey Welch was recently sued over the promotion and sale of the Hawk Tuah cryptocurrency memecoin, underscoring the importance of public figures conducting due diligence to verify they aren't endorsing a token that is in fact a security, say attorneys at Sheppard Mullin.
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Top Considerations For Insurance Companies In 2025
As insurance industry participants look to plan for the year, regulatory changes, climate-related challenges, the ongoing effects of social inflation and the potential for significant mergers and acquisitions will be among the key items for insurer boards and management to have on their radar, say attorneys at Debevoise.
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Del. Dispatch: Lessons From Failed Albertsons-Kroger Merger
The allegations in Albertsons' lawsuit against Kroger following the grocery stores' blocked merger demonstrate how a target company can best ensure that a buyer timely and effectively complies with its obligations to pursue the necessary regulatory approvals for a deal, say attorneys at Fried Frank.
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Series
Adventure Photography Makes Me A Better Lawyer
Photographing nature everywhere from Siberia to Cuba and Iceland to Rwanda provides me with a constant reminder to refresh, refocus and rethink the legal issues that my clients face, says Richard Birmingham at Davis Wright.
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Future Of Crypto-Asset Classification Is In 2nd Circ.'s Hands
A definitive ruling from the Second Circuit in a rare interlocutory appeal in the U.S. Securities and Exchange Commission's ongoing court battle with Coinbase could finally establish clear guidelines on the classification of digital assets, influencing how they are regulated and traded in the U.S., say attorneys at Manatt.
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5 Ways To Create Effective Mock Assignments For Associates
In order to effectively develop associates’ critical thinking skills, firms should design mock assignments that contain a few key ingredients, from messy fact patterns to actionable feedback, says Abdi Shayesteh at AltaClaro.
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More Environmental Claims, More Greenwashing Challenges
As companies prepare for the 2025 greenwashing landscape, they should take heed of a D.C. appellate decision that shows that environmental claims are increasingly subject to attack and provides plaintiffs with a playbook for challenging corporate claims of sustainability, say attorneys at Sidley.
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And Now A Word From The Panel: How MDLs Fared In 2024
A significant highlight of the Judicial Panel on Multidistrict Litigation's practice during 2024 was the increase in the percentage of new MDL petitions granted by the panel, with 25 granted and only eight denied — one of the highest grant rates in years, says Alan Rothman at Sidley.
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Assessing Gary Gensler's Legacy At The SEC
Gary Gensler's tenure as U.S. Securities and Exchange Commission chair is defined by a record of commonsense regulation in some areas and social activism in others, and by increasing judicial skepticism about the SEC's authority to fulfill its regulatory, enforcement, administrative law and adjudicatory functions, say attorneys at Arnold & Porter.
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Calif. Cannabis Decision Deepens Commerce Clause Divide
In Peridot Tree v. Sacramento, the Eastern District of California joined a growing minority of courts that have found the dormant commerce clause inapplicable to state-regulated marijuana, and the Ninth Circuit will soon provide important guidance on this issue, say attorneys at Perkins Coie.
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Takeaways From DOJ Fraud Section's 2024 Year In Review
Attorneys at Paul Weiss highlight notable developments in the U.S. Department of Justice Fraud Section’s recently released annual report, and discuss what the second Trump administration could mean for enforcement in the year to come.